Jindal Steel and Power Limited’s Board accepted the revised binding offer from Worldone Private Limited (acquirer) to divest its 96.42 per cent stake in Jindal Power Limited (JPL), a material subsidiary of JSPL, the company informed.
“As highlighted in our notice dated 24 July 2021, key features of the Revised Offer are that Worldone will buy out all the Equity Shares and Redeemable Preference Shares of JPL held by JSPL for a total consideration of approximately Rs 7,401 cr of which (i) Rs 3,015 crore will be payable by cash, and (ii) the balance Rs 4,386 Cr (approximately) will be payabale by way of assumption and takeover of liabilities and obligations of JSPL in relation to inter-corporate deposits and the capital advances paid by JPL to JSPL,” said JSPL in a statement issued on Saturday.
The deal will also entail debt associated with JPL (of Rs 6,566 crores approx as on December 31, 2020) moving out of JSPL’s consolidated books, thereby, strengtheningJSPL’s balance sheet, it said.
As announced earlier, JSPL through an independent transaction advisor (Grant Thornton Advisory Pvt. Ltd.) had undertaken an additional competitive and publicly held bidding process for the sale of its entire stake in JPL, in order to maximize the value for its shareholders.
“Advertisement for inviting Expression of Interest (EOI) from domestic and international bidders was published in the leading daily newspapers, however, JSPL did not receive even a single Expression of Interest (EOI), and therefore, the Revised Offer from Worldone was ipso facto selected as the winning bid by JSPL’s Board,” read the release.
The divestment of JPL is in line with JSPL’s strategic objective to focus on its India Steel business, become a Net Debt Free company, and significantly reduce its carbon footprint by almost half as part of its broader ESG objectives, it said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
